Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 2.44 of the Autumn Budget 2024, published on 30 October 2024, HC295, what the (a) territorial extent and (b) timetable is for the consultation on encouraging small brewers to retain and expand their access to UK pubs.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government wants to work with the hospitality industry, including the pub sector, to identify the barriers to small brewers accessing their local markets – particularly where there is consumer demand, for example in tourist areas – and to look at options for overcoming those barriers.
The government will set out further details of any consultation in due course, as well as the territorial extend of any measures.
Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 2.51 of Autumn Budget 2024, HC 295, what assessment she has made of the potential impact of changes to Agricultural Property Relief on food security.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has published information about the reforms to agricultural property relief at https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief#:~:text=From%206%20April%202026%2C%20the,rather%20than%20the%20standard%2040%25. Almost three-quarters of estates claiming agricultural property relief in 2026-27 are expected to be unaffected by these reforms.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
The UK has high food security and Autumn Budget 2024 continued to support and improve food security. The Government has provided £5 billion across this year and next to support the ongoing transition towards a more productive and environmentally sustainable agricultural sector in England. This will strengthen the domestic sector, and improve food security.
Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the cost to the public purse of implementing a change to the Agricultural Property Relief rate.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has published information about reforms to agricultural property relief at: https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief.
Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) in 2026-27 are expected to be unaffected by these reforms.
Historic data published by HMRC shows that in 2021-22, 73% of estates making agricultural property relief claims did so on total amounts worth less than £1m.
HMRC is commissioned by the Office for Budget Responsibility (OBR) at each fiscal event to produce Inheritance Tax receipts forecasts. More information behind this process is published on the OBR website: https://obr.uk/forecasts-in-depth/tax-by-tax-spend-by-spend/inheritance-tax/.
HMRC analysis suggests that in 2026-27, 500 estates claiming agricultural property relief will receive a lower financial benefit as a result of the Government’s reforms, out of a projected total of 1,800 estates making agricultural property relief claims in that year. This means that around three-quarters of estates making agricultural property relief claims will be unaffected by this measure.
Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of removing VAT on swimming lessons provided by non-council swimming facilities for (a) SEND children, (b) hydrotherapy patients, (c) the elderly and (d) other groups.
Answered by James Murray - Exchequer Secretary (HM Treasury)
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Tax breaks reduce the revenue available for public services, and must represent value for money for the taxpayer.
The Government has inherited a challenging fiscal position, with. A Treasury audit in July 2024 revealing an additional £21.9 billion pressure on departmental spending.
One of the key considerations for any potential new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates.
Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of increasing Draught Relief to 20% on (a) pubs and (b) small and independent brewers in North Cornwall constituency.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Pubs and breweries make an enormous contribution to our economy and society, and this is recognised in the tax system.
The current alcohol duty system supports pubs and breweries through Draught Relief, which ensures eligible products served on draught pay less duty. The duty system also supports small producers by providing a tapered duty discount on products below 8.5% alcohol by volume (ABV).
The Government is closely monitoring the impact of the recent reforms and rates that took effect on 1 August 2023. As with all taxes, the Government keeps the alcohol duty system under review during its Budget process.